By DPA,
Washington : General Motors has repaid $4.7 billion in government loans issued last year, clearing its remaining debt under the Treasury Department’s rescue plan to contain the fallout from the economic downturn.
The Treasury Department said Wednesday that General Motors had completed repaying its total government debt of $6.7 billion five years ahead of the loan’s maturity date and ahead of the company’s own accelerated plan for returning the money.
We are encouraged that GM has repaid its debt well ahead of schedule and confident that the company is on a strong path to viability,” Treasury Secretary Tim Geithner said.
General Motors has been slowly recovering from the crisis that tore through the US automotive industry as the United States fell into a recession. General Motors emerged from bankruptcy in July while under a majority government control but has continued to post billions in losses despite increased car sales.
The Bush administration launched the $700-billion government plan to bailout much of the finance industry to stave off further economic damage. President Barack Obama extended the plan to the automotive industry.